Rules spur P-note closure at UBS

UBS joins European banking peer HSBC in shutting down its offshore derivative business

Tighter rules and dwindling flows are taking a toll on issuers of participatory notes (P-notes) in the country, with top players heading towards the exit.
 
According to sources, Swiss bank UBS has stopped issuing offshore derivative instruments (ODIs) or P-notes based on domestic securities from January 1. Foreign investors typically buy P-notes. UBS joins its European peer HSBC, which had shut P-note operations last year.
 
Both brokerages were the among top 10 P-notes issuers in the country. Industry observers say more players are feeling the heat of change in regulations, such as increased disclosure norms and change in